translated from Spanish: Barrel oil price

In the 2020 economic package for the expenditure and revenue of the federal government, approved by Congress the Union, presented a target price of the barrel of crude oil (Mexican Export Blend-MME) of $49. Last December it was above $50. To close Friday, January 3, at $58.88. That is, more than 20% of the target price by 2020. The variation in the MME barrel last month was 15.56%. That is, from the first quote from December 2019 to Friday, January 3, 2020, there was an increase from $50.98 to $58.88. This represents a significant increase in revenue for the federal government, based on tensions between Iran and the US. Taking off nearly 5% overnight, after the attack in which General Qasem Soleimani of the Iranian army died. Of course, on a par with the MME, the OPEC barrel also experienced a significant increase of 14.32% last month. Major was the MME. On the other hand, the Ministry of Finance and Public Credit (SHCP) issued a press release last Friday announcing: “The SHCP completed the program of oil coverage for the fiscal year 2020, with which the oil revenues are secured in the face of reductions in the price of the Mexican Export Mix. These market operations were implemented in a timely manner with the aim of contributing to macroeconomic stability and protecting the country’s public finances this year. These options, coupled with the resources available in the FEIP, will ensure the federal government’s oil revenues in the face of a possible decrease in the price of crude oil below $49 per barrel, a level provided for in the Federation Revenue Act for FY 2020” (SHCP Communiqué No. 002, 3/Jan/2020). That is, the government of President Andrés Manuel López Obrador has insurance against variations less than $49, but the most important thing is that the positive difference, in just one month goes above 20% against the price set by the Income Act 2020. SOCIAL PROGRAMS
This has an economic and political significance to highlight. On the one hand, it will support spending on social programs, of maintaining these levels. Suffice it to say that in 2019, an average of 1.7 million barrels per day was produced from January to November. In December alone, those barrels had a 15.56% increase in revenue from oil barrel and dollar sales. If the trend continues, in addition to the coverages that The SHCP ensures, President López Obrador can count on up to 20% more of the budgeted revenue by 2020 for oil exports. And, these resources will be able to consolidate social programmes without producing negative effects on the economy. The budget already for infrastructure works will not be set aside. That is, a social aspects of public policies that can be financed without affecting macroeconomic indicators. STATES
Following this line of analysis, the likelihood that the federal government would turn to help states fiscally would have to do with the ability of governors to relate to both the sphere of the law and the president itself. Regardless of partisan origin, relationships that manage to weave politically by governors will be critical to the ability to access more resources, if the upward trend in the oil price continues. On this occasion there will be the possibility of compensating for astringencies already decreed in the 2020 Federation’s Egres Budget. We’ll have to be vigilant about the behavior of the oil barrel price, Y, the political signals from the federal government to the states in general, and to Sinaloa in particular. PARAGRAPHS: FROM CARTON HOUSE IN MEXICO
The Buki, Marco Antonio Solís, is one of the most popular Mexican singers in the country and where Spanish is spoken in the Americas, including the USA. One of his first popular songs was one of Ali Primer’s protest, Cardboard Houses: “How sad you hear the rain on the cardboard ceilings… how sad children live, in cardboard houses. How cheerful the dogs live the exploiter’s house. You won’t believe it but there are schools of dogs and they give them education, so they don’t bite the newspapers, but the employer, years ago, many years who is biting the worker… How sad you hear the rain in the cardboard houses, how far hope passes on the cardboard roofs.” The years keep happening, and hope doesn’t reach millions of cardboard ceilings. That is why, this beginning of the year, we must not forget that struggle that must continue on a daily basis. Obligingly, this task goes through education, this human right the Mexican state must continue to observe it, but above all, providing the resources to be inclusive to all Mexicans. From his early years to college. No matter if they live in cardboard houses. Thus, by exercising the right to education, hope can reach millions of mexicanos.lecturas_eldebate@yahoo.com



Original source in Spanish